While revenue for Disney Interactive Studios increased by 3%, year-on-year, bringing Q2 earnings up from $155 million to $159 million, this wasn’t enough to cancel out the massive losses in operating income. Last year, Q2 reported a $55 million loss. This year, that more than doubled to $115 million.

These losses, Disney explained to Gamasutra are largely thanks to the acquisition of developer Playdom, in a deal worth nearly $600 million.

Looking toward the future, Disney CEO Bob Iger is anticipating profitability in 2013, but explains that it is still “a work in progress”.